Web-based account management for hold and release of funds

ABSTRACT

A system and method for qualifying a bidder over a global network for an auction helps to significantly reduce or eliminate commerce fraud. An auction site, for example, enlists the system to maintain bidder funding accounts for prospective bidders. When a bid is placed, the funds are reserved in the bidder&#39;s bidder funding account including funds for a deposit if required. In the event that a bidder is not the high bidder, the reserved funds are released. At completion of the auction, the funds may be transferred from the winning bidder&#39;s bidder funding account to the seller, and the bid holds are released. A balance in the bidder funding account can be established according to funds deposited in the account in an interest-bearing account or via a line of credit issued from a bank card issuing company or the like.

This application claims the benefit of U.S. Provisional PatentApplication Ser. No. 60/133,687, filed May 10, 1999, the entire contentof which is herein incorporated by reference.

BACKGROUND OF THE INVENTION

The present invention relates to an account management system forInternet commerce applications and, more particularly, to a system forqualifying over the Internet a participant in a transaction.

An unfortunate result of the increasing market in electronic commerceover the Internet is the increasing occurrences of fraud and/or abuse.Such abuse has been particularly evident on Internet auction sites, ofwhich there are over 1,000 currently operating today. A majority of theabuse has been either individuals bidding on items for sale without theintention of ever taking possession of the items or individuals whointentionally bid on items with the intention of taking possession ofthe items without paying for them.

It would thus be desirable to provide an intermediary or third-partyparticipant that can provide an Internet account/credit managementsystem to eliminate the potential for fraud or abuse. Such a systemshould be able to determine with some certainty that the individual whohas registered on the site has funds available, which can be reserved asa deposit for the item or to cover the cost of the item if the biddersubmits a winning bid. It would also be desirable for the system toenable funds to be transferred between bidder and seller accounts atsettlement.

SUMMARY OF THE INVENTION

The system according to the present invention enables an auction companyto provide a secure way of preventing fraudulent bidding and preventingparticipation by bidders that fail to settle after winning an auction.The system is preferably an Internet web site that serves toelectronically transact the acceptance and verification of deposits frommultiple auctions or transactions and participants simultaneously. Thesystem provides an easy to use and efficient method for minimizingfraudulent bidding in multiple auctions simultaneously while beingcapable of providing insured (such as FDIC) interest bearing depositsheld for bidders. The system incorporates a secure web site capable ofcommunicating with numerous auction entities and tracking multipledeposit accounts for participants in a commerce environmentsimultaneously.

Participants are required to establish a deposit or margin account, aso-called bidder funding account, prior to their being able to bid. Whenthe bidder places a bid, the auction venue computer queries the systemto determine whether the bidder has an account. If not, the bidder isprovided an opportunity to sign up for an account.

When listing an asset for sale, a seller is prompted to indicate whethera bid deposit is required, and if so, the amount of the requireddeposit. The sellers or the auction venue determine the amount of thedeposit according to various factors, including the fact that higherdeposit amounts result in a smaller number of qualified bidders, butalso result in more qualified bidders. Moreover, the seller or theauction venue considers what amount of money would adequately compensatethe seller in the event that the bidder does not complete settlement. Asuggested deposit amount may also be calculated automatically.

If a deposit is required to participate in the auction, the auctionvenue transmits information to the deposit system relating to the amountof a required deposit. The system then puts a deposit hold on thebidder's bidder funding account for the amount of that auction'sdeposit.

During the auction, if the bidder is a high bidder, the amount of theactual bid is alternatively or additionally held or reserved in thebidder's bidder funding account. The deposit hold or bid hold is only inplace as long as the bidder is the high bidder. The holds are releasedin the event that the bidder is no longer the high bidder. Each time thebidder is a high bidder in a particular auction, a deposit hold isplaced on the bidder's bidder funding account along with the bid hold,allowing the bidder the ability to bid on multiple auctions requiringdeposit holds simultaneously up to the available balance of the bidderfunding account. Preferably, the bidder's deposit holds cannot exceed abalance in the bidder's bidder funding account.

In accordance with an exemplary embodiment of the invention, a method ofqualifying a bidder over a global network for an auction includes thesteps of (a) establishing a bidder funding account, (b) reserving aportion of the bidder funding account according to a bid submitted bythe bidder, and (c) releasing the reserved portion of the bidder fundingaccount if the bid is not a high bid. Step (b) may be practiced byreserving an amount of the bidder funding account corresponding to thebid submitted by the bidder. In this context, the method may furtherinclude transferring the reserved portion when settlement is complete.Subsequently, the method may include releasing the reserved portion ofthe bidder funding account.

The amount reserved may correspond to a deposit amount required by theseller or the auction venue. In this context, step (b) may be furtherpracticed by reserving an amount of the bidder funding accountcorresponding to the bid submitted by the bidder in addition to thedeposit amount. The deposit amount may be transferred to the seller ifthe bid is a winning bid and the bidder does not complete settlement.

In one mode of operation, the step of establishing a bidder fundingaccount includes depositing funds in the bidder funding account. In thiscontext, step (a) may be further practiced by paying interest on thefunds deposited in the bidder funding account. Alternatively, the stepof establishing a bidder funding account may be practiced byestablishing a line of available credit.

If after step (c), the bidder resubmits a bid, the system preferablyrepeats step (b) by reserving a portion of the bidder funding accountaccording to the bid submitted by the bidder.

In accordance with another exemplary embodiment of the invention, amethod of qualifying a bidder over a global network for an auctionincludes the steps of (a) determining whether a deposit is required toparticipate in the auction, and if so, determining an amount of thedeposit; (b) receiving a bid inquiry from the bidder and determiningwhether the bidder has established a bidder funding account, wherein(b1) if the bidder has not established the bidder funding account,enabling the bidder to establish the bidder funding account, and (b2) ifthe bidder has established the bidder funding account, accessing thebidder's bidder funding account; and (c) qualifying the bidder accordingto a balance in the bidder funding account.

If a deposit is required according to step (a), step (c) is practiced byreserving a first portion of the bidder funding account corresponding toan amount of the deposit. Step (c) is preferably further practiced byreserving a second portion of the bidder funding account correspondingto an amount of the bid. In this context, the method includestransferring at least the second portion when settlement is complete andreleasing the reserved first and second portions of the bidder fundingaccount. If a deposit is required according to step (a), step (c) may befurther practiced by transferring the first portion of the bidderfunding account if the bid inquiry becomes a winning bid and the bidderdoes not complete settlement.

Step (c) may be practiced by qualifying the bidder according to anamount of unreserved funds deposited in the bidder funding account.Alternatively, step (c) may be practiced by qualifying the bidderaccording to an amount of unreserved credit in the bidder fundingaccount.

In accordance with still another exemplary embodiment of the invention,a computer system for effecting qualifying of a bidder in an auction isprovided. The computer system includes at least one user computerrunning a computer program that requests information according to a bidinquiry input by a bidder. The computer system also includes a systemserver running a server program, wherein the at least one user computerand the system server are interconnected by a computer network. Thesystem server determines whether the bidder has established a bidderfunding account. If the bidder has not established the bidder fundingaccount, the system server sends information to enable the bidder toestablish the bidder funding account. If the bidder has established thebidder funding account, the system server accesses the bidder's bidderfunding account and qualifies the bidder according to a balance in thebidder funding account.

In accordance with still another exemplary embodiment of the invention,a computer program embodied on a computer-readable medium is providedfor qualifying a bidder over a global network for an auction.

BRIEF DESCRIPTION OF THE DRAWINGS

These and other aspects and advantages of the present invention will bedescribed in detail with reference to the accompanying drawings, inwhich:

FIG. 1 is a detailed schematic illustration of a computer system;

FIG. 2 illustrates the system environment and application;

FIG. 3 illustrates the site architecture according to the presentinvention; and

FIG. 4 is a flow diagram illustrating an auction process incorporatingthe system of the present invention.

DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS

The account management system implemented in the diagrams of FIGS. 2–4is preferably a browser-based system in which a program running on auser's computer (the user's web browser) requests information from aserver program running on a system server. The system server sends therequested data back to the browser program and the browser program theninterprets and displays the data on the user's computer screen. Theprocess is as follows:

1. The user runs a web browser program on his/her computer.

2. The user connects to the server computer (e.g., via the Internet).Connection to the server computer may be conditioned upon the correctentry of a password as is well known.

3. The user requests a page from the server computer. The user's browsersends a message to the server computer that includes the following:

-   -   the transfer protocol (e.g., http://); and    -   the address, or Uniform Resource Locator (URL).

4. The server computer receives the user's request and retrieves therequested page, which is composed, for example, in HTML (HypertextMarkup Language).

5. The server then transmits the requested page to the user's computer.

6. The user's browser program receives the HTML text and displays itsinterpretation of the requested page.

Thus, the browser program on the user's computer sends requests andreceives the data needed to display the HTML page on the user's computerscreen. This includes the HTML file itself plus any graphic, soundand/or video files mentioned in it. Once the data is retrieved, thebrowser formats the data and displays the data on the user's computerscreen. Helper applications, plug-ins, and enhancements such as Java™enable the browser, among other things, to play sound and/or displayvideo inserted in the HTML file. The fonts installed on the user'scomputer and the display preferences in the browser used by the userdetermine how the text is formatted.

If the user has requested an action that requires running a program(e.g., a search), the server loads and runs the program. This processusually creates a custom HTML page “on the fly” that contains theresults of the program's action (e.g., the search results), and thensends those results back to the browser.

Browser programs suitable for use in connection with the accountmanagement system of the present invention include Netscape® Navigatoravailable from Netscape® Communications Corporation and InternetExplorer available from Microsoft® Corp.

While the above description contemplates that each user has a computerrunning a web browser, it will be appreciated that more than one usercould use a particular computer terminal or that a “kiosk” at a centrallocation (e.g., a cafeteria, a break area, etc.) with access to thesystem server could be provided.

It will be recognized by those in the art that various tools are readilyavailable to create web pages for accessing data stored on a server andthat such tools may be used to develop and implement the accountmanagement system described below and illustrated in the accompanyingdrawings.

FIG. 1 generally illustrates a computer system 201 suitable for use asthe client and server components of the account management system. Itwill be appreciated that the client and server computers will runappropriate software and that the client and server computers may besomewhat differently configured with respect to the processing power oftheir respective processors and with respect to the amount of memoryused. Computer system 201 includes a processing unit 203 and a systemmemory 205. A system bus 207 couples various system components includingsystem memory 205 to processing unit 203. System bus 207 may be any ofseveral types of bus structures including a memory bus or memorycontroller, a peripheral bus, and a local bus using any of a variety ofbus architectures. System memory 205 includes read only memory (ROM) 252and random access memory (RAM) 254. A basic input/output system (BIOS)241, containing the basic routines that help to transfer informationbetween elements within computer system 201, such as during start-up, isstored in ROM 252. Computer system 201 further includes various drivesand associated computer-readable media. A hard disk drive 209 reads fromand writes to a (typically fixed) magnetic hard disk 211; a magneticdisk drive 213 reads from and writes to a removable “floppy” or othermagnetic disk 215; and an optical disk drive 217 reads from and, in someconfigurations, writes to a removable optical disk 219 such as a CD ROMor other optical media. Hard disk drive 209, magnetic disk drive 213,and optical disk drive 217 are connected to system bus 207 by a harddisk drive interface 221, a magnetic disk drive interface 223, and anoptical drive interface 225, respectively. The drives and theirassociated computer-readable media provide nonvolatile storage ofcomputer-readable instructions, SQL-based procedures, data structures,program modules, and other data for computer system 201. In otherconfigurations, other types of computer-readable media that can storedata that is accessible by a computer (e.g., magnetic cassettes, flashmemory cards, digital video disks, Bernoulli cartridges, random accessmemories (RAMs), read only memories (ROMs) and the like) may also beused.

A number of program modules may be stored on the hard disk 211,removable magnetic disk 215, optical disk 219 and/or ROM 252 and/or RAM254 of the system memory 205. Such program modules may include anoperating system providing graphics and sound APIs, one or moreapplication programs, other program modules, and program data. A usermay enter commands and information into computer system 201 throughinput devices such as a keyboard 227 and a pointing device 229. Otherinput devices may include a microphone, joystick, game controller,satellite dish, scanner, or the like. These and other input devices areoften connected to the processing unit 203 through a serial portinterface 231 that is coupled to the system bus 207, but may beconnected by other interfaces, such as a parallel port interface or auniversal serial bus (USB). A monitor 233 or other type of displaydevice is also connected to system bus 207 via an interface, such as avideo adapter 235.

The computer system 201 may also include a modem 237 or other means forestablishing communications over the wide area network 239, such as theInternet. The modem 237, which may be internal or external, is connectedto the system bus 207 via the serial port interface 231. A networkinterface 241 may also be provided for allowing the computer system 201to communicate with a remote computing device 250 via a local areanetwork 258 (or such communication may be via the wide area network 239or other communications path such as dial-up or other communicationsmeans). The computer system 201 will typically include other peripheraloutput devices, such as printers and other standard peripheral devices.

As will be understood by those familiar with web-based forms andscreens, users may make menu selections by pointing-and-clicking using amouse, trackball or other pointing device, or by using the TAB and ENTERkeys on a keyboard. For example, menu selections may be highlighted bypositioning the cursor on the selections using a mouse or by using theTAB key. The mouse may be left-clicked to select the selection or theENTER key may be pressed. Other selection mechanisms includingvoice-recognition systems, touch-sensitive screens, etc. may be used andthe invention is not limited in this respect.

The site architecture and system method will be described with referenceto FIGS. 2–4. Generally, an auction company or Internet auction venuecan implement the system according to the present invention to requireits users (i.e., bidders and sellers) to establish a management account,a so-called bidder funding account, and process all auctions through thesystem according to the present invention. As shown in FIG. 2, theeDEPOSIT™ system of the invention serves as an intermediary betweensellers and bidders participating in an auction over the Internet, andbetween the Internet auction site and the participants (sellers andbidders) in an auction. The system establishes and maintains bidderfunding accounts to ensure sellers that bidder funds are available forany required deposits and bid amounts. The Internet auction site enliststhe system to require bidders to maintain a bidder funding account, andthe system tracks each bid of every auction simultaneously.

The process of establishing an account will be described with referenceto FIG. 3. At the system home page 12, the user can access alogin/set-up area 14, a Frequently Asked Questions area 16, a User Guide18, or an informational area including company information 20, CustomerService 22 and a Help area 24.

Account maintenance and set-up are effected via the link at 14. Toestablish an account, the user is prompted to complete a registrationform via a link 26. The registration form will include personal andfinancial information about the user including, for example, name,address, phone number, e-mail address, social security number, etc. Oncecompleted, the user selects a user ID and password and is assigned anaccount number. The link 26 can also be accessed to enable the user toedit the user profile.

The user can deposit funds via a link 28 by any suitable means,including cashier's/certified check, online check, virtual check, creditcard payment, bank wire, e-mail or the like. Funds are deposited into asystem server bank account (such as an insured account) and trackedthrough the server database. Users can track and monitor their accountat any time via a link 30 to determine an amount of interest earned orthe status of holds on the account. All such holds or reservations areeffected via the system computer and do not affect the interest ratesfor each account. Bidders may deposit or withdraw their money at anytime but may only withdraw up to the non-held amounts in the account.Withdrawal requests are made via a link 32. Bidders may also have theoption of designating funds for certificates of deposits, where theyagree to keep their funds in the account for a specified period of timefor specific rates of return.

A balance in the bidder funding account can be an amount of unreservedfunds deposited in the bidder funding account and/or an amount ofunreserved credit in the bidder funding account according to an approvedline of credit provided to the user. In this context, portions of acredit line are reserved via an “authorization hold,” which is enabledaccording to known credit card-type issuers and processors. Theauthorization hold may draw on the credit line when an auction iscomplete or, when a deposit is required, when the bidder does notcomplete settlement after being a high bidder. The authorization holdserves to reserve a portion of the credit line. When the bidder is nolonger the high bidder, the authorization hold is released. Theauthorization hold can also act as an escrow service to hold transfer offunds until the items ordered have been accepted or delivered to thebidder.

The line of credit function can be effected via a bank card issuingcompany that currently provides credit such as through the Internet orby the system source. The system, through a link with the bank cardissuing company, can determine if the credit line is sufficient to placean authorization hold on the line of credit and to reverse theauthorization hold when the line of credit is not needed. An auctionvenue (or other business that requires a deposit) will identify thesystem according to the invention as a provider of a credit facility toqualify registered bidders to enable the bidder to leave a deposit whenthe selling party in an auction transaction requires one.

Registered bidders apply for the credit facility just as they wouldapply for a credit card, but through the bank card issuing companies.Just as with applying for a credit card, the applicant may request aline of credit, and the issuing company, based on the credit-worthinessof the applicant, can either issue that line of credit or reject therequested line of credit and issue either a lesser amount or none atall. The credit line determination can be immediate, and if accepted,the registered bidder would immediately receive an identification numberwith or without an actual system credit card.

If the registered bidder bids on an item requiring a deposit, the bidderis prompted to enter an identification number at the participatingauction site, and through the system, it is determined if the depositamount is available on the bidder's credit line. If so, the systemrequests an authorization hold on their credit line. If the bidder isnot the high bidder, the authorization hold is released. If the bidderwins the auction, the funds can be transferred through the bank cardissuing company and charged to the bidder according to a user agreementor according to another preset billing procedure.

An auction process including an implementation of the present inventionwill be described with reference to FIG. 4. Although the invention isdescribed in accordance with an application to an auction process, thesystem could readily be implemented into any transaction wherequalification is desirable. Thus, the term “auction” as used hereinmeans any transaction between parties where qualification of one or moreof the parties is desirable. In this context, the term “bidder” as usedherein refers to any participant in the transaction that is beingqualified with the system according to the invention, including, but notlimited to, buyers, sellers, vendors, service providers, and the like.

A bid is initially placed by a bidder at an auction venue in step S1. Ifthe auction venue does not incorporate the system according to thepresent invention (NO in step S2), the auction proceeds normally as isconventional, subject to potential fraud or abuse. If the auction venuehas implemented the system according to the present invention (YES instep S2), the system determines in step S3 whether the bidder has abidder funding account. If not (NO in step S3), the user is given anopportunity to open an account in step S4. If the user does not desireto open an account (NO in step S4), the user is provided with anindication that bids cannot be made at this venue without a bidderfunding account (step S5), and the user is returned to the auction venuehome page at step S1. If the user desires to open an account (YES instep S4), the user is directed to the system home page 12 where accountinformation can be gathered and an account can be established asdescribed above with reference to FIG. 3 (step S6). The system thenreturns the user to step S3 to determine whether the user has a validaccount.

If the user has successfully established a bidder funding account or theuser had previously established an account (YES in step S3), in step S7,the system determines whether sufficient funds are available to proceedwith the auction in step S7. In the event that sufficient funds are notavailable (NO in step S7), an indication is provided to the user, andthe user is prompted to deposit more funds in their bidder fundingaccount (step S8). The funds may be deposited by cashier's/certifiedcheck, online check, virtual check, credit card payment, bank wire,e-mail or any other suitable vehicle. If additional funds are notdeposited (NO in step S9), the bid is declined at step S10, and thesystem returns the user to the auction venue home page at step S1. Ifadditional funds are deposited (YES in step S9), the system returns theuser to step S7 to determine if sufficient funds are available.

If sufficient funds are available for the user's bid and any requireddeposit (YES in step S7), the system determines whether the user is ahigh bidder in step S11. If not (NO in step S11), the user is informedthat they are not the high bidder, and any existing bid holds or depositholds are removed (step S12). The system then returns the user to theauction home page at step S1 to place another bid. If the user is thehigh bidder (YES in step S11), a hold is placed in the bidder's bidderfunding account in step S13. That is, if a deposit is required toparticipate in the auction, a first portion of the bidder's bidderfunding account is reserved corresponding to an amount of the deposit.In one operating mode, a second portion of the bidder's bidder fundingaccount is also reserved corresponding to an amount of the bid. If nodeposit is required to participate in the respective auction, only thesecond portion of the bidder funding account is reserved.

In step S14, it is determined whether the auction is complete, and if so(YES in step S14), the user's bid is accepted. If the auction is notcomplete (NO in step S14), the system returns to step S11 to determinewhether the user remains the high bidder until the auction is complete.

When the auction is complete, the bidder may direct the reserved fundsfrom the bidder's bidder funding account according to the seller'sspecified instructions, enabling the seller to immediately deliver theproduct or otherwise effect settlement. Alternatively, the bidder caneffect settlement using funds separate from the bidder funding account,although delivery or the like in that instance may be delayed until theseller receives payment. In either instance, when settlement iscomplete, the reserved funds in the bidder's bidder funding account arereleased.

Failed transactions can be handled in any suitable manner, depending onthe party at fault, the reason for the failed transaction, etc. In theevent that the bidder is at fault, if a deposit was required toparticipate in the auction, the bidder typically forfeits the deposit.Since the amount of the deposit is reserved in the bidder's account,this amount can be transferred from the bidder funding account to theseller or otherwise. The system may require the seller to notify thesystem that the transaction did not settle and demand forfeiture of thedeposit. Once the seller demand has been received, the bidder isnotified and given an opportunity to protest the demand. If no protestis received, the system transfers the held funds to the seller. If aprotest is received, the seller and bidder are provided an opportunityto resolve the dispute, for example, by arbitration or the like. Asimilar procedure can be used in the event of seller fault. That is,sellers may also be required to maintain “bidder funding accounts” withseller deposits being reserved during the transaction. If a seller is atfault in a failed transaction, the seller may forfeit the deposit. Thedeposit hold and the bid hold remain in place, however, until either thetransaction is complete or until the dispute is otherwise resolved.

The system according to the invention exploits the impartiality of theInternet, providing an objective intermediary between transactionparticipants to ensure, for example, that bidders are qualified toparticipate in an auction. The account maintenance is also suitable foronline transactions such as retail consumer products and the like andoff-line transactions, for example, transactions requiring a deposit orother financial qualification. By ensuring that funds are available, thesystem according to the invention significantly reduces or eliminatesfraud and abuse in e-commerce transactions.

While the invention has been described in connection with what ispresently considered to be the most practical and preferred embodiments,it is to be understood that the invention is not to be limited to thedisclosed embodiments, but on the contrary, is intended to cover variousmodifications and equivalent arrangements included within the spirit andscope of the appended claims.

1. A method of qualifying a bidder via a computer system over a globalnetwork for an auction, the method comprising: (a) establishing a bidderfunding account by depositing funds in the bidder funding account; (b)the computer system reserving a portion of the bidder funding accountcorresponding to a bid submitted by the bidder; (c) the computer systemreleasing the reserved portion of the bidder funding account during theauction if the bid is not a high bid, wherein if after step (c), thebidder submits a new bid, the method further comprises repeating step(b); (d) transferring an amount corresponding to the reserved portionwhen settlement is complete; and (e) the computer system releasing thereserved portion of the bidder funding account after transferring theamount corresponding to the reserved portion of the bidder fundingaccount.
 2. A method according to claim 1, wherein step (a) furthercomprises paying interest on the funds deposited in the bidder fundingaccount.
 3. A method of qualifying a bidder via a computer system over aglobal network for an auction, the method comprising: (a) establishing abidder funding account; (b) the computer system reserving a portion ofthe bidder funding account according to a bid submitted by the bidder,the portion corresponding to a deposit amount required by a seller andcorresponding to the bid submitted by the bidder in addition to thedeposit amount; and (c) the computer system releasing the reservedportion of the bidder funding account during the auction if the bid isnot a high bid, wherein if after step (c), the bidder submits a new bid,the method further comprises repeating step (b).
 4. A method accordingto claim 3, further comprising transferring the deposit amount to theseller if the bid is a winning bid and the bidder does not completesettlement.
 5. A method of qualifying a bidder via a computer systemover a global network for an auction, the method comprising: (a) thecomputer system determining whether a deposit is required to participatein the auction, and if so, determining an amount of the deposit; (b) thecomputer system receiving a bid inquiry from the bidder and determiningwhether the bidder has established a bidder funding account, wherein(b1) if the bidder has not established the bidder funding account,enabling the bidder to establish the bidder funding account, and (b2) ifthe bidder has established the bidder funding account, accessing thebidder's bidder funding account; (c) the computer system qualifying thebidder according to a balance in the bidder funding account by (c1)reserving a portion of the balance based on the bid inquiry, (c2)releasing the reserved portion during the auction if the bid inquiry isnot a high bid, and (c3) repeating step (c) if after step (c2) thebidder submits a new bid inquiry, wherein if a deposit is requiredaccording to step (a), step (c1) comprises the computer system reservinga first portion of the bidder funding account corresponding to an amountof the deposit, and wherein step (c1) further comprises the computersystem reserving a second portion of the bidder funding accountcorresponding to an amount of the bid; and transferring an amountcorresponding to at least the second portion when settlement is completeand releasing the reserved first and second portions of the bidderfunding account.
 6. A method according to claim 5, wherein if a depositis required according to step (a), step (c) further comprisestransferring the first portion of the bidder funding account to theseller if the bid inquiry becomes a winning bid and the bidder does notcomplete settlement.
 7. A method according to claim 5, wherein step (c)comprises the computer system qualifying the bidder according to anamount of unreserved funds deposited in the bidder funding account.
 8. Amethod according to claim 5, wherein step (c) comprises the computersystem qualifying the bidder according to an amount of unreserved creditin the bidder funding account.